Question

Accounting Cycle problem

Your Name Accounting 201 Assessment Cycle Problem City Park Yoga, Inc. Wren Bliss teaches yoga and meditation. Because she likes the quiet and contemplative outdoor environment, she opened her new spacious studio in a building overlooking City Park. She named her new business, City Park Yoga, Inc. and opened her studio for classes in the beginning of September of 2020, Instructions: Complete Parts 1 - 9 as listed in this packet. Part 1 Record your journal entries in the general journal provided from the descriptions of each individual event. ********SKIP A LINE BETWEEN EACH JOURNAL ENTRY********* Sept 1. Wren Bliss opened her business by investing 20,000 cash and $14,000 of equipment in exchange for common stock Sept. 1. Wren paid $4,500 cash in advance to pay for three months' rent on the studio. Sept. 1. Wren paid $3,000 cash in advance to pay for 12 months of insurance for her business. Sept. 2. City Park Community College paid Wren $10,000 in advance to teach yoga classes over the next 10 weeks. Wren is to begin teaching classes immediately Sept. 3 Wren bought $2,500 of supplies on account. Sept. 4. A City Park Community College professor hired Wren to provide meditation sessions with her accounting students so all the students could all make an "A" on their Accounting Cycle Problems. Wren completed the classes and was paid $1,000 in cash. Sept. 5. The NOLA Foundation hired Wren to teach yoga classes for expectant mothers. The agreement between Wren and the NOLA Foundation stated that Wren would bill for her services after the classes we completed. Sept. 17. Wren completed teaching 20 classes for the NOLA Foundation for expectant mothers for $125.00 each and sent a bill to the NOLA Foundation Sept. 19. Wren paid $500 towards her account incurred previously for supplies purchased on September 3rd. Sept. 21. The NOLA Foundation sent Wren a check for $1,000 in partial payment of the bill sent previously for yoga classes for expectant mothers Sept. 27. Wren paid $300 in cash for the studio's monthly utility bill. Sept. 30. The corporation paid Wren a $5,000 dividend.

Answer 1

Journal Entries Date Account Title and Explaination Debit Credit Post. Ref. Sep.1 S 20,000.00 14,000.00 $ Cash Equipment Common Stock (To record Cash and Equipment invested into business) $ 34,000.00 Sep.1 4,500.00 Prepaid Rent Cash |(To record three months rent paid in advance) $ 4,500.00 Sep.1 3,000.00 Prepaid Insurance Cash (To record Insurance paid for 12 months) 3,000.00 Sep.2 $ 10,000.00 Cash Unearned Revenue (To record advance received for future classes) $ 10,000.00 Sep.3 $ 2,500.00 Supplies Accounts Payable (To record purchase of supplies on account) $ 2,500.00

Sep.4 $ 1,000.00 Cash Fees Earned (To record cash received for classes) 1,000.00 Sep.5 No Journal Entry required for hiring $ 2,500.00 Sep.17 Accounts Receivables (20 x $125) Fees Earned (To record Classes provided and billed) $ 2,500.00 Sep.19 Accounts Payable 500.00 Cash 500.00 (To record payment of payables)

500.00 Sep.19 Accounts Payable Cash (To record payment of payables) $ 500.00 $ 1,000.00 Sep.21 Cash Accounts Receivables (To record collection of receivables) $ 1,000.00 Sep.27 300.00 Utilities Expense Cash (To record Utiities Expense paid) $ 300.00 $ 5,000.00 Sep.30 Dividends Cash (To record cash Dividends Paid) 5,000.00